Retirees to outlive savings by 10 years

The average retiree in the UK is likely to outlive their retirement savings by more than 10 years, research from the World Economic Forum (WEF) claims.

Women are expected to be the worst affected, outliving their savings by 12.6 years on average, compared to 10.3 years for men.

The report said both government and employer-sponsored pension plans are under strain around the world, placing more responsibility on savers to prepare financially for retirement.

However, savings have not accelerated fast enough to cover the gap, and retirees across six major economies - Australia, Canada, Japan, the Netherlands, the UK and the US - will not have enough to live on in retirement.

Han Yik, head of institutional investors at the WEF, said:

"The real risk people need to manage when investing in their future is the risk of outliving their retirement savings.

"As people are living longer, they must ensure they have enough retirement funds to last them through their longer lives.

"This requires investing with a long-term mindset earlier in life to increase total savings later on."

The report also recommended that governments should make changes to pension regulations to help individuals address their savings gaps.